According to news reports, credit hedge fund Prosiris Capital Management has received seed money from Investcorp. Although no money figures were given in an interview with Dow Jones Newswires, Investcorp admits that "it generally provides initial investments ranging from $50 million to $100 million to hedge-fund managers."
Prosiris is a structured finance fund that was started by Reza Ali, a former head of prop trading for the Americas at Goldman Sachs.
Ali says his new fund will invest in variety of structured credit, including, mortgage-backed securities, enhanced trust certificates, such as those that finance aircraft purchases, and structured credit.
According to financial experts, mortgage-backed securities were one of the leading causes of the fiscal collapse of 2008.
In an interview with Dow Jones, Ali expressed interest in "legacy portfolios," which he expects American and European banks to sell in order to "meet more stringent capital requirements."
"Banks have earned their way out of the crisis, they are more motivated sellers now," Ali tells Dow Jones. Phil Albinus is the former editor-in-chief of Advanced Trading. He has nearly two decades of journalism experience and has been covering financial technology and regulation for nine years. Before joining Advanced Trading, he served as editor of Waters, a monthly trade journal ... View Full Bio